T. Rowe Price Group witnessed an inflow of more than $750 million in U.S. mutual funds in the third quarter alone. The publicly owned investment management firm also reported strong earnings during the same quarter on the back of higher revenues. Higher investment advisory revenues earned from T. Rowe Price mutual funds boosted the company’s total revenues in the quarter.
Also, the company’s assets under management (AUM) increased significantly in the third quarter. The trend continued even during the first month of the ongoing quarter (October). Steady inflows into its mutual funds and the ability to offer low-cost investment options consistently make mutual funds from T. Rowe a wise investment choice.
T. Rowe Price’s Performance in Q3
In the third quarter, T. Rowe Price reported earnings per share (EPS) of $1.45, which jumped 23.9% from the year-ago figure. Additionally, net revenues increased 11.8% to $1.17 billion from the year-ago quarter. The rise was prompted mainly by higher investment advisory fees that increased 13% year over year to $1.10 billion.
Further, investment advisory revenues earned from T. Rowe Price mutual funds, distributed in the United States, were up 11.4% year over year to $783.9 million. Investment advisory revenues earned from other investment portfolios, managed by the company, increased 17.2% from the prior-year quarter to $312.8 million.
As of Sep 30, 2017, total AUM jumped 16.6% year over year to $947.9 billion. Further, the company announced preliminary assets under management of $971 billion for October 2017, indicating an increase of 2.4% from September. The company is expected to witness strong growth in its AUM and investment advisory revenues in November and December as well.
T. Rowe Price Funds at a Glance
T. Rowe Price is a renowned mutual fund family focused on fulfilling the needs of its investors. The fund family is set to maintain the momentum gained in the third quarter during the ongoing quarter on the back of effective investment approach, low expenses and strong investment objective guidance.
